Life insurance is an important investment that provides a safety net for your loved ones in case of your untimely demise. With so many options available in the market, it can be overwhelming to choose the right policy. One such policy that has gained popularity in recent years is Principal Life Insurance. In this article, we will provide you with a comprehensive guide on Principal Life Insurance, its benefits, features, and how it can be an ideal choice for you and your family.
What is Principal Life Insurance?
Principal Life Insurance is a term life insurance policy offered by Principal Financial Group. This policy provides coverage to the policyholder for a specific term or period, ranging from 10 to 30 years. In case of the policyholder’s death during the term, the beneficiary receives a death benefit. The policy also offers additional benefits, such as accelerated death benefit rider, waiver of premium rider, and child rider, which we will discuss later in the article.
The policy offers level term coverage, which means that the premium and coverage amount remain the same throughout the term. The premiums are comparatively lower for younger individuals or those in good health, making it an ideal choice for them.
Features of Principal Life Insurance:
Here are some of the notable features of Principal Life Insurance:
- Flexible coverage options to meet your needs and budget.
- Term lengths ranging from 10 to 30 years.
- Level term coverage with a fixed premium and coverage amount.
- Option to convert the policy to a permanent policy before the term expires.
- Optional riders, including accelerated death benefit rider, waiver of premium rider, and child rider.
The Benefits of Principal Life Insurance:
Principal Life Insurance offers a range of benefits to policyholders and their beneficiaries, including:
1. Financial Security:
The primary benefit of life insurance is financial security for your loved ones in case of your untimely demise. The death benefit provided by Principal Life Insurance can help your family pay off debts, cover living expenses, and meet their financial needs.
2. Affordable Premiums:
The premiums for Principal Life Insurance are comparatively lower than other policies, making it an affordable option for young individuals or those in good health.
3. Flexibility:
Principal Life Insurance offers flexible coverage options, allowing you to choose a term length and coverage amount that suits your budget and needs.
4. Additional Benefits:
The policy offers additional benefits, such as accelerated death benefit rider, waiver of premium rider, and child rider, which can provide additional coverage and financial security to your family in case of unforeseen circumstances.
Accelerated Death Benefit Rider:
The accelerated death benefit rider is an optional benefit provided by Principal Life Insurance. This rider allows the policyholder to access a portion of the death benefit in case of a terminal illness or chronic illness. The accelerated death benefit can be used to cover medical expenses, living expenses, or other costs associated with the illness. The remaining death benefit is paid to the beneficiary upon the policyholder’s death.
Eligibility:
To be eligible for the accelerated death benefit rider, the policyholder must be diagnosed with a terminal illness or chronic illness, as defined by the policy. The policyholder must also meet the specific criteria outlined in the policy.
Limitations:
The accelerated death benefit rider has certain limitations, such as a maximum amount that can be accessed and a waiting period before the benefit can be accessed. The policyholder should review the policy for specific details.
Waiver of Premium Rider:
The waiver of premium rider is another optional benefit provided by Principal Life Insurance. This rider waives the policyholder’s premium payments in case of a disability that prevents the policyholder from working and earning an income. The rider ensures that the policy remains in force, providing continued coverage for the policyholder and their family.
Eligibility:
To be eligible for the waiver of premium rider, the policyholder must meet the specific criteria outlined in the policy. The policyholder must also provide proof of disability.
Limitations:
The waiver of premium rider has certain limitations, such as a waiting period before the rider becomes effective and a maximum duration for which the rider can be applied. The policyholder should review the policy for specific details.
Child Rider:
The child rider is an optional benefit provided by Principal Life Insurance. This rider provides coverage for the policyholder’s children, ensuring their financial security in case of their untimely demise. The rider provides a death benefit in case of the child’s death, ensuring that the family has the financial resources to cover funeral expenses and other costs associated with the child’s passing.
Eligibility:
The child rider is available for children between the ages of 15 days and 18 years. The policyholder must also meet the specific criteria outlined in the policy.
Limitations:
The child rider has certain limitations, such as a maximum coverage amount and a waiting period before the rider becomes effective. The policyholder should review the policy for specific details.
FAQ:
1. What is Principal Life Insurance?
Principal Life Insurance is a term life insurance policy offered by Principal Financial Group. This policy provides coverage to the policyholder for a specific term or period, ranging from 10 to 30 years. In case of the policyholder’s death during the term, the beneficiary receives a death benefit.
2. What are the features of Principal Life Insurance?
Some of the notable features of Principal Life Insurance include flexible coverage options, term lengths ranging from 10 to 30 years, level term coverage with a fixed premium and coverage amount, option to convert the policy to a permanent policy before the term expires, and optional riders, including accelerated death benefit rider, waiver of premium rider, and child rider.
3. What are the benefits of Principal Life Insurance?
Principal Life Insurance offers a range of benefits to policyholders and their beneficiaries, including financial security, affordable premiums, flexibility, and additional benefits, such as accelerated death benefit rider, waiver of premium rider, and child rider.
4. What is the accelerated death benefit rider?
The accelerated death benefit rider is an optional benefit provided by Principal Life Insurance. This rider allows the policyholder to access a portion of the death benefit in case of a terminal illness or chronic illness. The accelerated death benefit can be used to cover medical expenses, living expenses, or other costs associated with the illness. The remaining death benefit is paid to the beneficiary upon the policyholder’s death.
The waiver of premium rider is another optional benefit provided by Principal Life Insurance. This rider waives the policyholder’s premium payments in case of a disability that prevents the policyholder from working and earning an income. The rider ensures that the policy remains in force, providing continued coverage for the policyholder and their family.
6. What is the child rider?
The child rider is an optional benefit provided by Principal Life Insurance. This rider provides coverage for the policyholder’s children, ensuring their financial security in case of their untimely demise. The rider provides a death benefit in case of the child’s death, ensuring that the family has the financial resources to cover funeral expenses and other costs associated with the child’s passing.
7. How much coverage does Principal Life Insurance provide?
The coverage amount provided by Principal Life Insurance depends on the policyholder’s needs and budget. The policyholder can choose a coverage amount ranging from $50,000 to $5 million.
8. How much does Principal Life Insurance cost?
The premium for Principal Life Insurance depends on various factors, such as the policyholder’s age, health, term length, and coverage amount. The premium for a 20-year term policy with a coverage amount of $250,000 for a healthy 30-year-old male can range from $15 to $30 per month.
9. How can I apply for Principal Life Insurance?
You can apply for Principal Life Insurance online or through an agent. You will need to provide personal and medical information and undergo a medical exam to determine your eligibility and premium rate.
Conclusion:
Principal Life Insurance is a comprehensive term life insurance policy that offers flexible coverage options and additional benefits, such as accelerated death benefit rider, waiver of premium rider, and child rider. The policy provides financial security to your loved ones in case of your untimely demise and ensures that they have the resources to cover their expenses and maintain their lifestyle. With affordable premiums and various coverage options, Principal Life Insurance can be an ideal choice for young individuals or those in good health. Consider investing in Principal Life Insurance today and provide your family with the financial security they deserve.